What’s Next? The Dollar Index Price Fell Down by 9% Over 2017

The Dollar Index Price fell down by 9% over 2017 and in so doing, allowed a surprising amount of JPY strength that many did not even think of even though with the continued strong risk sentiment as shown by record highs in equities.

While the USD/JPY rate is long away from low at 108 as traders are still confused by the rate not rising. Some blame Bank of Japan whereas others see this Fed’s fault. On the other hand, traders should be aware that JPY has weakened a lot against other currencies especially EUR. With the Ichimoku Cloud technical study, on price chart traders can see that price looks to be testing support.

The cloud base is near 112.30, but looking to the future cloud, traders see a little conviction one way or other as the cloud has almost thinned. There is no doubt that the uncertainty of future trend at the beginning is shown by that coincidence of thinning cloud. Traders are it institutional or retail, tend to see the beginning of the year as the time to make their stakes on a large scale so position setting tends to be strong at the start. The starting of the year and the uncertainty as shown by Ichimoku could lead to nice jump that has been supported by the jump in USD/JPY 1-month that recently reached the lowest level.

The resistance of USD/JPY is a short-term one at 55-DMA at 112.96 with support at just 112.30, the Ichimoku Base and further at 112.10 (100-DMA). At this point of time in the year where volatility is lowest since 2014, a breakout that aligns with an increase in implied volatility could be a recipe for a move toward 113.15(Dec. 27 low) and the 113.75(Dec. 12 high).

Previous three trading years have provided dismal moves in USD/JPY of 0.8%, -2.85% & -3.65% respectively. Traders should watch for a further slow melting of the price below current price support of 112. The rapid rise in long retail positions, on the contrary, provides bias to favor further losses with drop-in short-positions.

Forex signal – The ringgit erased yesterday’s gains to open lower

KUALA LUMPUR: The ringgit deleted yesterday’s increases to open lower, in early exchange Wednesday, on mellow offering weight against the scenery of more hesitant than-anticipated money related strategy from the US Federal Reserve, a merchant said. Forex signal 

At 9 am(0100gmt Forex signal )

the neighborhood note was exchanged at 4.4290/4330 against the greenback from Tuesday’s end of 4.4230/4280.

He said the neighborhood note withdrew as speculators were all the while searching for some market driven impetus after a week ago’s increases.

Vulnerabilities, for example, the French presidential decision and European Central Bank arrangement meeting one month from now have likewise scratched showcase notion.

The ringgit, in the interim, was exchanged lower, aside from against the Singapore dollar.

It ascended against the Singapore dollar to 3.1586/1626 from 3.1643/1696 on Tuesday yet fell againt the British pound to 5.5269/5337 from 5.5097/5177 Wednesday.

It facilitated against the euro to 4.7833/7881 from Tuesday’s end of 4.7729/7796 and plunged against the yen to 3.9669/9708 from 3.9277/9332 on Tuesday.

Free Forex Signals

     EUR/USD

Buy Buy at1.079 Take profit* at1.0818 Stop loss at1.0758

USD/CHF

Sell Sell at0.9947 Take profit* at0.9922

Stop loss at 0.9972

GBP/USD Buy Buy at1.2474 Take profit* at1.2498  Stop loss at1.2438

USD/JPY

Filled Sold at111.73 Bought at111.62

Profit, pips +11

USD/CAD

Buy Buy at1.3372 Take profit* at1.3408

Stop loss at1.3328

AUD/USD

Buy Buy at0.7654 Take profit* at0.7678

Stop loss at0.7618

EUR/JPY

Filled Sold at120.6 Bought at120.52

Profit, pips +8

NZD/USD

Filled Bought at0.7029 Sold at0.7044

Profit, pips +15

GBP/CHF Buy Buy at 1.2403 Take profit* at 1.2428

Stop loss at 1.2376

Forex Signals for Malaysian traders